Indonesia PMI December 2016

Indonesia: Manufacturing PMI falls in December

January 3, 2017

Indonesia’s manufacturing industry remained on a weak footing at the end of Q4. The manufacturing Purchasing Managers’ Index fell from 49.7 in November to 49.0 in December, according to a release provided by Nikkei and IHS Markit. The index lies below the 50-threshold, which indicates a contraction in the manufacturing sector.

December’s subdued reading came on the back of weak demand conditions as orders from abroad dropped sharply. In addition, employment fell at the sharpest rate since August and output contracted at the steepest pace since July. Meanwhile, a strong USD and higher prices for raw materials pushed up price pressures in December.

FocusEconomics Consensus Forecast panelists see manufacturing rising 5.0% in 2017, which is down 0.1 percentage points from the previous month’s estimate. For 2018, the panel expects manufacturing to increase 4.9%.

Newsletter Subscription

Indonesia Economic News

According to Statistics Indonesia (BPS), a trade surplus of USD 1.7 billion was recorded in August (August 2016: USD 369 million), rebounding from the one-off deficit posted in July and handily beating the USD 607 million surplus that market analysts had expected.
Exports grew 19.2% annually in August, slowing from the 41.0% expansion recorded in July.